fincanna's active royalty portfolio · fincanna highlights morris l. reid | chairman of the...
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U.S. & California Market
FinCanna Capital is a royalty company for the licensed U.S. cannabis industry.
f incannacapital.com [email protected]
FinCanna's Active Royalty Portfol io
Cultivation Technologies Inc. (“CTI”) is a multi-award winning extraction and manufacturing enterprise located in Palm Desert, California that provides high quality Butane Hash Oil (BHO) concentrates for white label manufacturing, toll processing and packaging to hand-selected brands and cultivators in California. Under the Royalty Agreement (fully funded), FinCanna earns a perpetual royalty of 10% of CTI’s consolidated revenues, of which 5% is paid in cash monthly and 5% deferred until certain triggering events, subject to certain buyback options. Additionally, FinCanna will be entitled to 25% to 50% of the sale proceeds of any change of control.
California is the largest cannabis market in North America, representing $3.1 billion in licensed cannabis sales in 2019. [2]
The North American legal cannabis market grew to $13.8 billion in 2019 sales. The U.S. accounted for $12.2 billion, followed by Canada with $1.6 billion. [1] Globally, legal cannabis brought in $14.9 billion in 2019 sales.
California not only has the largest state economy in the U.S., it is also fifth largest economy in the world. With licensed cannabis sales projected to total US$7.2 billion by 2024,[2] California is recognized as a global leader of the cannabis market.
The state licensed cannabis market in the U.S. is expected to reach $43.9 billion by 2024, while the global estimated sales will reach $47.3 billion by 2024. [3]
The U.S. market for cannabis-infused products in 2020 is projected to reach nearly $3 billion, up ~40% over 2019. [4]
CSE : CALI | OTCQB : FNNZFFinCanna Capital Corp Fact Sheet - October 31, 2020
[1] https://finance.yahoo.com/news/2019-big-legal-cannabis-143505778.html
[2] https://www.latimes.com/california/story/2019-08-14/californias-biggest-legal-marijuana-market
[3] https://www.fool.com/investing/2019/09/10/us-marijuana-sales-will-be-12-times-higher-than-ca.aspx
[4] https://newfrontierdata.com/cannabis-insights/u-s-preferences-for-cannabis-infused-products
WORLDWIDE LEGAL CANNABIS SALES - 2019(1)
61%21%
11%7%
Rest of U.S.
Cal i fornia
Canada
Rest of World
ezGreen Compliance offers a state-of-the-art enterprise compliance and point-of-sale software solution (“ezGreen”) for licensed medical cannabis dispensaries and cultivators. Their ezGreen software is the only HIPAA (Health Insurance Portability and Accountability Act) certified point-of-sale software in the market. In August 2020, FinCanna acquired from its former royalty portfolio company 100% of the assets and economic interests of ezGreen and is currently focused on growing its business in California and certain other states.
QVI, Inc. is a cannabis infused product manufacturer located in Sonoma, California and operating as “The Galley”. The Galley is a fully licensed 8,300 square foot facility and built to the high standards of both the Food and Drug Administration and the California Dept. of Public Health. The Galley is focused on high demand areas of production: Edibles, Topicals, Tinctures, Chocolates, Hard Candies, Gummies, Beverages, Vapes, Pre-Rolls and Flower Packaging. Under the Royalty Agreement, FinCanna receives a corporate royalty of 20% of QVI’s revenues, paid in cash monthly. Additionally, FinCanna will receive an Annual Supplemental Payment, that when coupled with the royalty, will ensure FinCanna receives from QVI a minimum of 70% of QVI’s annual after-tax net income, paid in cash every year. If QVI is sold, then FinCanna will receive 70% of the sales proceeds.
FinCanna Highlights
Morris L. Reid | CHAIRMAN OF THE BOARD
Andriyko Herchak CPA, CA, | CEO, DIRECTOR
Holger Heims | DIRECTOR
Robert Scott CPA, CA, CFA | CFO
Gaynell Rogers | ADVISOR TO THE BOARD
Patrick Goggin | ADVISOR TO THE BOARD
John Campbell CPA, CA, MBA, CFA | ADVISOR TO THE BOARD
Rosy Mondin | ADVISOR TO THE BOARD
Dani Walton | ADVISOR TO THE BOARD
Disclaimers and Cautionary Note Regarding Forward-Looking Information
Investor Relations Share Structure
Kin Communications Inc.Arlen Hansen, President [email protected]+1-866-684-6730
Please visit https://www.fincannacapital.com/corporate/forward-looking-statement/
Shares issued & outstanding:
Warrants
Options
Shares Issuable upon Conversion of Debenture
Total Shares (Fully diluted)
FinCanna Royalty Model Benefits
f incannacapital.com [email protected]
CSE : CALI | OTCQB : FNNZFFinCanna Capital Corp Fact Sheet - October 31 , 2020
AutonomyOwner/Operators maintain control and operating autonomy
Tax EfficientRoyalty payments are made before tax
Long-term Partnership No exit required, economic interests aligned and FinCanna entitled to a board seat
Non Dilutive Allows owners to preserve their equity
Attractive Cost of Capital Can be lower than issuing equity
Flexible Less restrictive than debt, tailored to the needs of the business
Management and Board of Directors
As of October 31, 2020
Advisory Board
U.S. Focused with Emphasis on California
Royalty Model is Very Attractive for Operators and FinCanna
Diversified Investment Portfolio over Multiple Sectors
Early Entrant in U.S. with Extensive Network
Invest in Private Companies Not Available to Individual Investors
Number of Shares $ Value on Exercise
100,289,734
36,425,000
6,850,000
46,433,333
189,998,067
n/a
$10,927,500
$2,712,500
$6,965,000
$20,605,000